April 24, 2020 1:19pm
More funds for small businesses in CARES Act 2.0
Updated on April 24, 2020, at 1:19pm
The President has signed into law federal legislation to appropriate more COVID-19 funding for small businesses and to support health care systems and public health. The new law includes more money for programs like the Paycheck Protection Program and Economic Injury Disaster Loans as well as appropriations for hospitals, health care providers, and COVID-19 testing.
Importantly, the law includes key provisions to ensure that more relief funds will make their way to small businesses in underserved communities and to minority-owned businesses. GLI recently urged Congress to prioritize funding for these employers.
We are calling this legislation the CARES Act 2.0 because it effectively reauthorizes programs in the CARES Act that Congress passed in March 2020. Funds for the Paycheck Protection Program and Economic Injury Disaster programs were exhausted earlier in April.
This legislation passed the Senate on April 21. It passed the House on April 23. The President signed it into law on April 24.
Here is what’s in the legislation.
Small Business Support
- Adds an additional $310 billion for the Paycheck Protection Program (PPP)
- $60 billion of the new $310 billion for PPP is reserved to support businesses in underserved areas and minority-owned businesses, a proposal that GLI advocated for to members of Congress:
- $30 billion for loans made by Insured Depository Institutions and Credit Unions that have assets between $10 billion and $50 billion
- $30 billion for loans made by Community Financial Institutions, Small Insured Depository Institutions, and Credit Unions with assets less than $10 billion (Community Financial Institutions as minority depository institutions, certified development companies, microloan intermediaries, and State or Federal Credit Unions)
- Adds an additional $60 billion for the Economic Injury Disaster Loan program (EIDL) with $10 billion set aside for small business grants.
Public Health Support
- $75 billion for reimbursement to hospitals and healthcare providers to support the need for COVID-19 related expenses and lost revenue.
- $25 billion for necessary expenses to research, develop, validate, manufacture, purchase, administer, and expand capacity for COVID-19 tests.